logo
Plus   Neg
Share
Email

Crude Oil Futures Settle Sharply Higher

Crude oil prices rose sharply on Friday, extending strong gains recorded in the previous session, on reports Saudi Arabia is set to cut crude exports next month, and on hopes OPEC will increase output cuts.

Oil futures had plunged sharply earlier in the week amid rising concerns about the outlook for energy demand due to the impact of the ongoing U.S.-China trade war on the global economy.

West Texas Intermediate Crude oil futures for September ended up $1.96, or about 3.7%, at $54.50 a barrel.

WTI crude futures for September ended up $1.45, or 2.84%, at $52.54 a barrel on Thursday, after having plunged 4.7% a session earlier.

Despite the gains in the last two sessions, oil futures shed about 2.1% in the week.

According to a report in Reuters, Saudi Arabia, de facto leader of the OPEC, plans to maintain its crude oil exports below 7 million barrels per day in August and September.

A day before, the Bloomberg reported that the kingdom has phoned other oil producers to discuss possible policy responses amid a continued slide in prices.

Traders remain hopeful of more OPEC production cuts despite the International Energy Agency (IEA) cutting its global oil demand growth forecasts for this year and next, citing trade war tensions.

OPEC and its allies have agreed to cut production by 1.2 million b/d through to the end of the first quarter of 2020 to rebalance the market.

Middle East tensions, sanctions on Iran and Venezuela and data from Baker Hughes that shows U.S. energy firms to have cut six oil rigs in the week to August 9, contributed as well to oil's sharp uptick in the session.

The total rig counts now stand at 764, the lowest since February 2018, Baker Hughes said in its report. With this week's reduction, the rig count has declined for six consecutive weeks now.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT
>